If we haven't met yet, my name is Joe Mahlow, and I specialize in the Personal Finance and Credit field. One passion of mine is creating informative posts on subjects that are relevant to my audience. Today, I want to shed light on the topic of repairing your credit for free. As a response to frequently asked questions by my former and existing clients – it can be achieved with some elbow grease. However, it's important to know that anything that is free usually involves extra effort. The good news is that if you're willing to put in the time and dedication, this will save you both money and time. Without any further ado, let's dive in.
Table of Contents
Obtaining Credit Repair Services at No CostRepairing Your Credit for Free: DIY GuideUtilizing Credit Repair Software: A Viable Option?Free Credit Repair: Obtaining Your Credit ReportsCan Credit Repair Boost My Credit Score?Tips to Get Started with Credit Repair
Obtaining Credit Repair Services at No Cost
While it may sound attractive to come across someone or a company offering free credit repair, chances are the proposition might not be as straightforward as they make it appear. Almost always, no one would offer this service without expecting anything in return. As an example, when the author started in the credit repair industry 15 years ago, they provided free services to showcase their abilities and expand their client base. However, the clients who received services had to provide feedback, which then the company used to bolster their portfolio. To this day, their company still offers free repair services but only for one round, with the caveat that the client has to enroll and pay the initial fee. In reality, free services have an implied cost.Nevertheless, it is possible to repair your credit for free if you are willing to spend time doing it. The author suggests disputing credit reports for free, an activity that could take up to two hours a month for approximately five months. However, if time constraints make this task impossible, then seeking credit repair services from a nearby company might be the better option, albeit costing between $400-600 on average.
Repairing Your Credit for Free: DIY Guide
Repairing your credit score on your own may require a bit of time and effort, but it is fairly simple when following the right steps. It's crucial to note that disputing your credit reports online might not be the best option. The following tips will help you get started.
1. Avoid online disputes: Never dispute your credit reports online since this can limit the number of times you can dispute your credit report in a year. Also, the dispute process is dated and won't produce the outcomes you want.
2. Research and obtain your credit reports: Spend about 70% of your effort researching and getting copies of your credit reports. Consider using a credit report provider that offers the most available data, such as Identity IQ, to find all possible errors in your report.
3. Know the disputing guidelines: You aren't required to go through the Fair Credit Reporting Act (FCRA) and Fair Debt Collection Practices Act (FDCPA) word-for-word, but you must understand your rights as a consumer.
4. Draft your dispute letter: Never rely on inexperienced advice or templates. Instead, create your dispute letter by writing in your name, address, date of birth, last four digits of your social security number, and the name and account number of the account you'd like to dispute, and then write the body of the paragraph. Ask that the account be validated by providing proof of the account, like a credit application, all monthly billing statements, and the ledger balance history showing the payments made on the account, along with the dates and times.
5. Wait for a response or send another letter: Wait for 30 days for a response via mail. If no proof is provided within that time frame, draft and send another letter via certified mail requesting that the account be deleted, or the late payments be removed.
6. Repeat steps 4 and 5: Continue to draft and send dispute letters until you get the results you want. When in doubt, reach out to a reputable credit repair firm like ASAP Credit Repair.
When it comes to drafting your own disputes, keep your language simple and direct. Use Google to find dispute template letters so you can get an idea of the structure. However, never copy any online template letters.
Utilizing Credit Repair Software: A Viable Option?
When I first entered the credit repair industry, my priority was to find a platform that would facilitate the creation of dispute letters for my clients in order to streamline their experience and enhance my efficiency. At that time, the only option available was the credit repair cloud software. Over time, even though it was initially designed for credit repair companies to utilize for their clients, the software has evolved and can now be used by individuals as well. Through a free 30-day trial, anyone can access the credit repair cloud and generate a dispute letter at no cost. This is an excellent option for anyone looking to repair their credit as it provides a step-by-step guide throughout the credit repair process and offers extensive information on credit repair in general. Moreover, the software provides a wide assortment of dispute letters, tactics, and dispute reasons to cater to unique needs. However, it's vital to note that the free trial only provides first-round dispute letters. To complete the entire credit repair process, one will have to manually create future round letters or pay to upgrade the software. It's worth checking out other credit repair software in the market before settling on one that suits your needs best. Once you have honed the process, you can consider starting your own credit repair business and helping others repair their credit.
Here are a few tips for utilizing credit repair software:
1. Look for a platform that creates effective dispute letters.
2. Utilize free 30-day trials to test out the software before committing to buy.
3. Familiarize yourself with the information on credit repair available via the platform.
4. Consider upgrade options provided by the software for your specific needs.
Free Credit Repair: Obtaining Your Credit Reports
In order to repair your credit for free, you will need a copy of all three credit reports from Equifax, Experian, and TransUnion. While it's recommended to dispute with all the available credit reporting agencies and data furnishers as you learn more about credit repair, it's best to keep it simple when starting out.Accessing your credit reports is important not just to list derogatory accounts in your disputes but also to determine which credit report you should use. The short answer is yes; there is a preference. Fair Isaac Corporation (FICO) reports are preferred by most lenders who approve loans, but due to their high cost, it's not recommended to obtain them until the end of your credit repair services.Instead, it's important to obtain the best Vantage score report, which provides the same data as a FICO report but is much less expensive. IdentityIQ provides the best credit reports, in the opinion of the author, as they offer more data than other credit monitoring sites. This additional information can help you identify more errors on your credit report, leading to better results.While it's not mandatory to use IdentityIQ, accessing all three credit reports from a reputable credit monitoring site is necessary. The author has found that their clients' results were higher with IdentityIQ reports than with any other traditional site.
Can Credit Repair Boost My Credit Score?
In short, yes - credit repair can enhance your credit score, but it's vital to realize that it's just one of several ways to improve it. Without the management and upkeep of excellent credit and payment history, your credit score may not show consistent growth.Many individuals assume that credit repair is a cure-all for their credit issues; however, unless there are inaccuracies or reporting errors in the account, the chances of having a legitimate account removed from your credit report are slim. So, how does credit repair work to help boost your credit score?
1. Removing negative payment history or negative accounts will almost always improve your credit score.
2. Alongside this, you must have positive revolving and installment accounts reporting, or your credit score increase may be negligible.
3. Having good payment history on your active account is crucial to maintaining fantastic credit. Suppose you're limited on credit and need to build it. In that case, we highly recommend beginning with a secured credit card that can assist you in building credit quickly.
It's important to understand that credit repair is a powerful tool to improve your credit score, but you must have established credit, make payments on time, and keep your credit card balances close to zero dollars at all times to ensure that your credit repair efforts have the best possible impact on your credit score.
Tips to Get Started with Credit Repair
During my 15 years in the industry, I have witnessed various scenarios where individuals hesitate to initiate the credit repair process due to a lack of know-how. However, taking the first step to learn about credit repair or seeking professional help is crucial for effectively repairing your credit and saving thousands of dollars in paid interest in the coming years. Therefore, I recommend the following steps to get started:
1. Take the initiative and take action to repair your credit rather than becoming complacent and inactive.
2. Learn about credit repair and create your first dispute letter.
3. Look into hiring a credible credit repair company that can do the work for you.
If you are finding it difficult to locate a reliable credit repair company, ASAP Credit Repair offers a free consultation and evaluation to help you restore your credit quickly and efficiently.